Perrigo To Review Strategic Alternatives For Tysabri Royalty Stream

(RTTNews) - Drug maker Perrigo Co. plc (PRGO) said that as part of its ongoing business portfolio review, it will review strategic alternatives for the rights to the royalty stream from sales of the multiple sclerosis drug Tysabri, or natalizumab.

Tysabri is an FDA approved treatment for multiple sclerosis. Perrigo acquired the rights to the Tysabri royalty stream through its 2013 acquisition of Elan Corporation plc.

Perrigo CEO John Hendrickson said, "Tysabri dramatically improves the quality of life of patients with multiple sclerosis and its royalty stream provides a strong and predictable cash flow. However, after careful consideration, we believe now is the right time to review strategic alternatives for Tysabri in order to monetize the value of this attractive asset."

Perrigo has engaged Morgan Stanley as its financial advisor to lead the review of strategic alternatives process for Tysabri. The company noted that there can be no assurances that this strategic review will result in a transaction.

In a separate statement, the company announced the appointment of independent directors Geoffrey Parker and Theodore Samuels to its board of directors.

Parker's appointment was effective Monday, November 7, 2016, while Samuels will join the board on January 4, 2017 after his expected retirement from Capital Group. Parker will join the Audit Committee.

Parker currently serves as a member of the board of directors of Genomic Health, Sunesis Pharmaceuticals and ChemoCentryx. He previously served as Chief Financial Officer of Anacor Pharmaceuticals from September 2010 to May 2015.

Samuels has served as President of Capital Guardian Trust Company, a Capital Group company, since 2010 and an equity portfolio manager and investment analyst at Capital Group since 1981.